Can I Cancel My Auto Insurance At Any Time?

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There are plenty of reasons to cancel your auto insurance. Some people cancel car insurance after finding a better plan, for example. Others cancel car insurance after selling their vehicle or moving to the city. But can you really cancel your car insurance at any time?

Keep reading to discover everything you need to know about when you are permitted to cancel your car insurance.

You Can Technically Cancel Car Insurance At Any Time

Technically, you can cancel your car insurance at any time. There’s nothing stopping you from calling your car insurance company today and canceling your car insurance policy.

cancel auto insurance at any timeSometimes, your car insurance policy will be canceled immediately after you call, and you will receive a refund for all prepaid premiums. In other cases, your car insurance policy will last for another 15 or 30 days, or until payment is due.

Different car insurance companies have different cancellation rules. Some companies might require you to pay a cancelation penalty, for example. Others require you to cancel your insurance policy 30 days in advance:

  • Some car insurance companies allow you to cancel any time without penalty, with cancelation taking effect immediately
  • Other car insurance companies require a 15 or 30 day waiting period before your policy is canceled, with payment required up to that date
  • Some car insurance companies prevent you from canceling a new policy within 30 to 60 days of first signing up for the policy

Typically, you will only be charged a fee if you bought a car insurance policy and then immediately canceled it. In most cases, you won’t be charged a cancelation fee for canceling your car insurance policy.

To cancel your car insurance policy at any time, just contact your car insurance company’s helpline or customer service line. Or, contact your local insurance agent. Policyholders cancel and switch insurance policies every day across America. The process should be easy. In rare situations, you might need to write a cancellation letter.

Cancelation Fees for Car Insurance

In most cases, a car insurance company will not charge a cancelation fee for canceling your policy. However, specific policies differ between insurance companies.

Some companies might charge a flat-rate fee, charging a $25 or $50 fee in exchange for canceling your policy immediately.

Other companies charge a percentage fee. They might charge a cancelation fee of 25% of your remaining premium, for example.

Every car insurance company has its own cancelation policy. Check your insurance documents to verify you understand your insurer’s cancelation policies. Look at the fine print to ensure you understand any fees and surcharges. In some cases, it may be best to wait until your policy is up for renewal before you cancel it.

Do I Get a Refund When Canceling Car Insurance Any Time?

Will you get a refund on remaining premiums when canceling your car insurance at any time?

The answer depends on your insurance company. Some insurance companies will refund all premiums you have already paid, for example. If you prepaid for a 6 month or 12 month car insurance policy, then you might receive the complete value of your premium as a refund.

If you prepaid for a month of car insurance coverage, on the other hand, then you may or may not receive a refund on these premiums. If you paid for car insurance for the month of July and you cancel your policy on July 15, then your insurance may refund premiums from July 15 to the end of the month. Or, your insurance company might keep the money and avoid paying any refund.

Can I Cancel Car Insurance Within the Grace Period?

Generally, you can cancel car insurance at any time. However, there may be cancelation restrictions during something called the ‘grace period’.

Typically, the grace period provides car insurance coverage for a specified number of days past your payment due date. If your car insurance payment is due on July 1 and it is now July 5, then you may not receive a refund on your car insurance premiums during this grace period, which can last for up to 7 to 10 days after your payment is due. Technically, you were using car insurance on these dates, and your previous car insurance payment covered this grace period.

With some insurance companies, you can receive a refund on your grace period payment if you contact your car insurance company and provide proof that you were insured with a different insurance company on the dates in your grace period.


Car insurance companies have different cancelation policies. Generally, however, you can cancel your car insurance at any time. Sometimes, your car insurance will also be canceled immediately – like the same day or next day after you call. In other cases, your car insurance will only be canceled after 15 or 30 days.

Read your insurance policy documents to verify you understand your car insurance policy. Then, contact your car insurance company to begin the cancelation process.

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